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The Next Brick-and-Mortar Sector to Crumble?

Wednesday - 1/30/2013, 5:13am  ET

Amazon's online business will doom office supply stores, right? In this video, Austin Smith makes the Foolish case for Staples  outperforming competitors such as Office Max  and Office Depot  and holding its own against Amazon.  How might this happen? Staples already sells a ton of stuff online. It has a distribution network that's more advanced than Amazon's, and it has its own brand of office supplies, which gives it a further price advantage. Staples had some restructuring costs, but it is cash flow rich, selling around 10 times normalized earnings, and even pays a 3.3% dividend. On top of all that, it buys back its shares.